Bitcoin 101

How Do Bitcoin Transactions Work?

Bitcoin is a digital currency that exist as a record of transactions.  These transactions are broadcast to the peer-to-peer network and once broadcast, need to be verified, confirming that the transaction is valid and then recorded on the public transaction database, which is known as the blockchain.

Bitcoin transactions are not as complicated as they sound.  Here is a simple breakdown of how they work.

  • 1

    A transaction request is made

  • 2

    The transaction is broadcasted to P2P computers (nodes)

  • 3

    Miners, running mining rigs, verify the transaction

  • 4

    Transactions combine to form a data block to be added to the cryptocurrency blockchain

  • 5

    Transaction is complete, miners are rewarded by earning newly minted coins and transaction fees.

Cryptocurrency Terminology

  • Bitcoin (BTC)

    A type of digital currency in which a record of transactions is maintained, and new units of currency are generated by the computational solution of mathematical problems. Bitcoin operates independently of a central bank. Bitcoin can also refer to a single unit of bitcoin.

  • Block

    A file that contains a “permanent” record of transactions

  • Blockchain

    The blockchain is the technology behind Bitcoin and most other prominent cryptocurrencies. It’s a system in which a record of transactions made in Bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

  • Block Reward

    The amount of BTC awarded or earned for successfully mining or verifying a block

  • Digital Wallets

    An online “wallet” in which individuals can store their bitcoin or other cryptocurrencies. Unlike the blockchain, digital wallets are exclusively controlled by their owner. All Bitcoin wallets must follow Bitcoin protocol to send and receive funds within the network. Digital wallets can hold a multitude of assets, whether it be fiat currencies, commodities, or cryptocurrencies.

  • Hash Rate

    The measure of a miner’s performance; the number of calculations a miner can perform in one second solving the BTC code.

  • Miners

    People or companies that “mine” bitcoin. Miners use cryptographic hash functions to solve a block containing the latest bitcoin transaction data. The miner that solves the block first is rewarded with bitcoin. Miners can add the solved block to the blockchain, enabling the Bitcoin ecosystem to continue functioning.

  • Mining

    A system that adds transactions and provides security to the Bitcoin blockchain; how new bitcoins enter the market.

Bitcoin
btc / usd
$20369.00
(-56.15%)
Market Cap Rank: #1
Market Cap: $388547948731
24H Volume: $25651763822
24H High/Low: $20844/$19821.82

David Lee

President

David is a seasoned engineer & entrepreneur with expertise in technology infrastructure. With over 20 years of industry experience. David has enabled clients and partners to innovate critical IT infrastructure and deploy solutions across multiple industries. David has collaborated with Fortune 500 companies to set enterprise strategy, modernize applications and build, run and maintain IT environments. David is a licensed Professional Engineer of Ontario with a Masters of Engineering, and Co-Founder of IT PRO CANADA and other venture companies.

Captin Sabapathy

Chief Executive Officer

An expert at fulfilling any business requirements into technical solutions architecture, Captin is widely recognized for his innovative approach to design, implementation and management of Information Technology products and services. He has been instrumental in designing and building technology platforms for multiple Fortune 500 companies across the globe. His expertise in the modeling of large-scale systems enable his clients to rapidly adopt new technology solutions. Captin is the Co-Founder of IT PRO CANADA and other venture companies. 

Michelle Demarest

Chief Operating Officer

A highly skilled Program and Project Management professional collaborating with companies across Canada and the United States, Michelle utilizes her 20+ years of technical knowledge along with strategic insights, to create and deliver enhanced integration and automation for large-scale technology startups.  Renowned for her ability to successfully manage complex projects, Michelle holds certifications in Project Management (PMP), Six Sigma, Certified Bitcoin Professional (CBP) and is one of only 6000 Certified Information Security Professionals (CISSP) in Canada.

Dave Raymond

Executive Chairman

Dave is the President of Erinwood Ford Mississauga, Canada where his day-to-day responsibilities include managing over 100 employees, implementing processes to maintain award winning customer satisfaction, excellent employee moral and deploying new technologies to grow profit. Dave is also active in many other companies with a wide-ranging focus.  Mr. Raymond’s philanthropic work also includes as many as 15 charities including being a sponsor of the Erindale Collegiate and the Character Counts Award, Salvation Army’s Toy Mountain and Board Member of St. Joe’s Hospital.

David Campbell

Financial Advisor

David Campbell is an experienced financial executive and Financial Advisor to Quarry Dynamics.  David has significant experience as CFO for many private and public technology companies over the last 30 years, including taking 3 companies public as CFO and doing numerous acquisitions, divestitures, debt and equity raises.   David earned his CFA designation in 1996 and started his career as a venture investor for a C$800 million fund.  He currently spends most of this time as President of Hammond Paper Company, a paperboard distribution and converting company he acquired in 2017. 

Patrick Forbes

Advisor

Patrick Forbes has decades of experience as an entrepreneur in areas ranging from construction and property development to software development and telecommunications.  Mr. Forbes’ business experience includes executive level management, finance, administration, sales, product research, operations, strategic and tactical & operations planning, logistics and deployment.  Pat is the former Chief Executive Officer of Trade 360 Corporation, a privately held Ontario corporation and has been the President and the Chairman of the Board of additional Ontario private and public companies.

Mark Fletcher

Corporate Legal Counsel

Mark Fletcher, J.D. acts as consulting Senior Corporate Counsel to Quarry Dynamics Inc.  Mark has many years’ experience at the nexus of business, law, and finance with emphases on corporate governance, capital markets, corporate finance, and mergers and acquisitions.  In addition to many years in private practice, his experience includes:  serving as General Counsel to public and private corporations; serving on the Boards of Directors of public and private corporations; and, serving as Chief Executive Officer of a publicly-traded biotechnology corporation.